6 ms·

If that 30% includes the rent and maintenance of your store, as well as the checkout employees. And imagine that you are selling goods with almost zero marginal

If that 30% includes the rent and maintenance of your store, as well as the checkout employees. And imagine that you are selling goods with almost zero marginal cost. Does it still sound that bad? Anyway, metaphors fail to help understand this situation in my opinion.

nirui 6y ago
Problem is, the maintenance was for the entire mall with only very little done to your store, and the checkout employee that you mentioned can only do the one job with probably of taking your money as hostage. Also, in a real word mall, the rent and maintenance fee will not increase as you makes more money. Yes, they can try to sell you a better location for a higher price, but it's a mutually beneficial sell (You get a better location from the sell). My point: 30% was too much for what Google/Apple is providing. Let me also add: > And imagine that you are selling goods with almost zero marginal cost First of all, developing a product costs money, you need to pay everybody including yourself. After all that, advertising, user support etc all costs money. So even if Google/Apple wants other people to treat this service as a mall, it's not a mall, they don't even provide lighting, long bench, air conditioning and free toilet (all of these are inescapably expensive to maintain). Instead, it's more like a searchable list + content delivery service where people can search the item and then download it. They should design their fees more close to that. Now, imagine saying this to your user: "Hey dear user, yes, that 30% increase in price won't give you any advantage compare to those who directly purchased it from our website. Yes, it's expensive just because you brought it from Google/Apple, nothing else, because we end up receive the same amount of money.... yes, 30% every month for your subscription, and this is the only approved way for Google/Apple to allow us to provide our service to you."
- xuki 6y ago
  > the rent and maintenance fee will not increase as you makes more money Nope, malls often charge a fixed rent PLUS a percentage of sales.
  - lotsofpulp 6y ago
    Franchises also take 15%+, and that is excluding card processing fees and chargeback costs. In a highly demanded location, it’s possible you’re paying a percentage of revenue to the land owner, the franchisee, the card networks, and of course the various governments.
- ksec 6y ago
  >Also, in a real word mall, the rent and maintenance fee will not increase as you makes more money. Not exactly true, Mall will raise rent if you are making more sales, knowing you are making lots of money they want a bigger piece of it. And in many cases, they are taking a fix rent as well as percentage of sales. It kind of depends on your business segment and brand. For example Food Court and Restaurants operate on different terms, Super Market and Jewellery shops will have different arrangement. So it is a little more complicated.
Aerroon 6y ago
Now imagine that the mall has 100,000 other stores in it as well. Your store is in the middle of some random other stores. It's not in a prominent position. Yeah, that sounds pretty bad.
- votepaunchy 6y ago
  And imagine that the mall has over 1 billion customers. Not so bad.
  - rimiform 6y ago
    Those customers are also trapped in the mall, so you can't get their patronage if you're not in the mall. Good or bad depending on whom you ask.
deleted 6y ago
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nirui 6y ago

Problem is, the maintenance was for the entire mall with only very little done to your store, and the checkout employee that you mentioned can only do the one job with probably of taking your money as hostage. Also, in a real word mall, the rent and maintenance fee will not increase as you makes more money. Yes, they can try to sell you a better location for a higher price, but it's a mutually beneficial sell (You get a better location from the sell). My point: 30% was too much for what Google/Apple is providing. Let me also add: > And imagine that you are selling goods with almost zero marginal cost First of all, developing a product costs money, you need to pay everybody including yourself. After all that, advertising, user support etc all costs money. So even if Google/Apple wants other people to treat this service as a mall, it's not a mall, they don't even provide lighting, long bench, air conditioning and free toilet (all of these are inescapably expensive to maintain). Instead, it's more like a searchable list + content delivery service where people can search the item and then download it. They should design their fees more close to that. Now, imagine saying this to your user: "Hey dear user, yes, that 30% increase in price won't give you any advantage compare to those who directly purchased it from our website. Yes, it's expensive just because you brought it from Google/Apple, nothing else, because we end up receive the same amount of money.... yes, 30% every month for your subscription, and this is the only approved way for Google/Apple to allow us to provide our service to you."

xuki 6y ago
> the rent and maintenance fee will not increase as you makes more money Nope, malls often charge a fixed rent PLUS a percentage of sales.
- lotsofpulp 6y ago
  Franchises also take 15%+, and that is excluding card processing fees and chargeback costs. In a highly demanded location, it’s possible you’re paying a percentage of revenue to the land owner, the franchisee, the card networks, and of course the various governments.
ksec 6y ago
>Also, in a real word mall, the rent and maintenance fee will not increase as you makes more money. Not exactly true, Mall will raise rent if you are making more sales, knowing you are making lots of money they want a bigger piece of it. And in many cases, they are taking a fix rent as well as percentage of sales. It kind of depends on your business segment and brand. For example Food Court and Restaurants operate on different terms, Super Market and Jewellery shops will have different arrangement. So it is a little more complicated.

Aerroon 6y ago

Now imagine that the mall has 100,000 other stores in it as well. Your store is in the middle of some random other stores. It's not in a prominent position. Yeah, that sounds pretty bad.

votepaunchy 6y ago
And imagine that the mall has over 1 billion customers. Not so bad.
- rimiform 6y ago
  Those customers are also trapped in the mall, so you can't get their patronage if you're not in the mall. Good or bad depending on whom you ask.

deleted 6y ago

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